Dec. 10, 2018
Market trends report for December 2018
If you have been paying attention to the headlines over the last few weeks you will have noticed a consistent theme. That theme has been uncertainty, and markets do not like uncertainty.
There are many stories that are affecting the global landscape, however what we care about is not tariffs, or riots, but what is happening here in our own back yard. We care about how home values are being affected.
The main theme here in the Metro area is housing affordability. We have seen many years of consistent price appreciation, and inventory shortages that have lead to bidding wars over desirable properties. Is this still the case?
As our Denver Metro Association of Realtors stats show, there is beginning to be a shift in our market. As the Holiday season kicks off, and 2018 draws to a close, the Real Estate market adjusts, and seasonly slows down. In addition, the market has cooled due to lack of affordability, and this is directly affected by rising interest rates. Mortgage interest rates declined for the week of December 10, 2018. Rates reported for December 10, 2018 were averaging 4.59% and this is lower than the November average of 4.82%. Although these rates were lower due to the volatility in the stock and bond markets, the overall trend of higher mortgage rates has affected homeownership affordability, and this lack of affordability does put a damper on appreciation of the overall market. The higher that the mortgage rates are, the less house you can buy.
The market trends reported in December are for the residential Real Estate market and reflect statistics for the 11 county Denver Metro Area. The average sold price has reached $462,344 and this represents an increase of 6.47% on a year over year basis. Inventory has increased substantially on a year over year basis and is 46% higher than this time last year. This is the proof in the pudding that the market has started to shift, and that opportunities have presented themselves for Buyers in this market. Buyers are starting to negotiate harder on price, and inspection terms, and Sellers do not have the luxury of sitting back and waiting for multiple offers to come rolling in.
As the Real Estate market continues to shift and change, the importance of working with an experienced Real Estate consultant has never been more valuable. Sellers will need to price their homes precisely to the market, to receive the most value. Buyers will need to work with the consultant who knows how to get their offer accepted while extracting the most value out of their offer to get the best deal.
Contact me today to discuss how my team can bring value to your Real Estate needs, and lets put our expertise to work for you.